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Along with this, a bench of Judge Shyam Babu Gautam and Judge Pradeep Narhari Deshmukh said in their order that the process of calling for financial bids has been completed, thus the lenders will not be able to hold the second round of auction.
The National Company Law Tribunal (NCLT) on Thursday accepted Torrent Investments’ statement against the re-auction plan of indebted company Reliance Capital. Along with this, a bench of Judge Shyam Babu Gautam and Judge Pradeep Narhari Deshmukh said in their order that the process of calling for financial bids has been completed, thus the lenders will not be able to hold the second round of auction. Torrent Investments had made the highest bid of Rs 8,640 crore in the online auction held on December 21.
But Reliance Capital’s Committee of Creditors (CoC) couldn’t find the right amount and was planning a new auction. Torrent Investments had filed an application against this with NCLT. “The auction system extension process is found to be in violation of Section 39A of the Business Resolution and Insolvency Process Rules,” the court said in its order.
After this order, the CoC and the administrator designated by Reliance Capital will not be able to make any changes to the price of the offer made in the auction. Torrent was followed by the IIHL with a bid of Rs 8,110 crore. It is believed that Reliance Capital’s creditors’ committee may appeal against this order to the National Company Law Appeals Tribunal (NCLAT). Reliance Capital has an outstanding debt of around Rs 40,000 crore.
Disclaimer:Prabhasakshi has not edited this news. This news has been published from PTI-language feed.
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